Gifts That Reduce Your Taxes
You can build a better future for LGBT individuals and families. What’s more, you can also enjoy tax benefits from these gifts now, or you can establish a future gift that will pass tax benefits along to your loved ones.
Gift of Cash
Cash is the simplest asset to donate and the quickest way to make an immediate impact for the Center. If you want to further our work today and claim the entire amount of your gift as a charitable income tax deduction, consider a gift of cash. Make your gift online, via a check or money order, or with a wire transfer.
Stocks & Securities
When you give stock or securities (stock, bonds, mutual funds), you may be eligible for a double tax benefit: 1) You receive an income tax deduction for the full, present, fair market value of the assets and 2) you may completely avoid capital gains tax on the appreciation of the assets. This is one of the easiest gifts to give and one of the most useful in accomplishing your philanthropic goals.
Retirement Plan Gifts
Retirement assets are among the most heavily taxed, making them an ideal opportunity for charitable giving once you no longer need the assets. The Center is exempt from paying the taxes that otherwise might be owed. Consider making the Center a beneficiary of your retirement assets while leaving other less-heavily taxed assets to loved ones.
Please let us know if you have named the Los Angeles LGBT Center as a beneficiary so we can thank you for your generosity and show you the impact your gift will have.
Charitable Lead Trusts
You can benefit from the tax savings while retaining assets that you would like your family to receive someday.
There are two types of charitable lead trusts:
- Charitable lead annuity trust: This gift provides a fixed amount each year to the Center, often generating either, or both, an income tax and a gift tax deduction.
- Charitable lead unitrust: This gift provides a variable amount each year to the Center, based on the value of the assets in the trust, with similar tax advantages as the charitable lead annuity trust.
You can fund this gift with:
- Closely held stock: A popular choice is closely held stock in a family business that has the potential to grow.
- Appreciated securities: You can use a single appreciated security or a diversified portfolio that has the potential to grow.
- Real estate: Income-producing real estate is a good choice to fund this gift.
You can make a significant gift for the Center without touching your bank account. With a gift of real estate, you can help create a welcome world for LGBT people everywhere, enjoy tax benefits, capital gains taxes, and you avoid the hassle of selling the real estate yourself.
There are seven types of real estate gifts:
- Outright gift: When you give real estate that you have owned longer than one year, you get a federal income tax charitable deduction equal to the property’s fair market value. This deduction reduces the cost of making the gift and frees up cash that would be used to pay taxes. You eliminate capital gains tax. You avoid gift tax on the transfer. The gift also reduces your future taxable estate.
- Gift in your will or living trust: This gift of real estate gives you the flexibility to change your mind at any time and to give a larger gift than you may be able to during your lifetime.
- Retained life estate: You can transfer your personal residence to the Center but retain the right to occupy or rent the home for a chosen period of time, usually your lifetime.
- Bargain sale: To fund this gift, you sell your property to the Center for less than market value. The difference between the actual value of the property and the sale price is the amount of your charitable gift. This is the only gift that provides you with a lump sum of cash and a charitable deduction.
- Charitable remainder unitrust: You can contribute any appreciated real estate you’ve owned for more than one year, provided it’s not mortgaged, and receive an income stream for life or a term of up to 20 years.
- Charitable lead trust: With this gift, you can transfer to your family tax free, real estate that has the potential to grow.
- Memorial or endowed gift: This is a great way to honor a loved one. When you make an endowed gift of real estate, your contribution becomes part of our endowment.